Supply Chain Council of European Union |

LD Logistics questioned by PAC over K25m defective contract

BY Joan Nick
UPNG Journalism student

The Public Accounts Committee has found that LD Logistics was awarded a K25 million contract on a defective tender bid document, to deliver medical supplies throughout the country in 2014.
This was revealed yesterday at the inquiry into the Department of Health procurement of drugs and medical supplies by the PAC.
Bogia MP Robert Naguri presented before the committee, a bidding document that LD Logistics had used in the bidding to distribute medical supplies in the country.
The tender bid document submitted consisted of a list of provinces and cost of air and sea freight and land transport and how much it would cost LD Logistics to deliver medical supplies to each provincial health facility.
MP Naguri said: “It is very interesting that for NCD, the cost of delivering medical supplies was about K1.6 million and this K1.6 million was broken down to air, sea, and road freights.”
As presented by MP Naguri on the document air freight costs about K689,000, the costs of sea freight is K287,000 plus road.
What seemed unrealistic and alarming was the cost at which medical supplies were to be distributed and the mode of transport for use within NCD. He questioned the chairman of the Health Department technical evaluation committee, Paul Dopsie as to how this document presented by the LD Logistics was the tender bidding document that got approved.
Mr Naguri said: “When you sit down in your technical evaluation committee, you will tell that this is a defective document and you will not consider.”

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